Is it a good thing or a bad thing for stocks to match bonds? Here's the situation.

The so-called share matching debt is to participate in the placement of convertible bonds. Generally speaking, when a listed company issues convertible bonds, investors who hold shares of the listed company can obtain the priority placement right according to the glass they hold. After obtaining the placing right, you can purchase the corresponding amount of convertible bonds as long as you pay the funds in full on the placing day. So is it a good thing or a bad thing for stocks to match bonds? Let's get to know each other.

Is stock matching debt a good thing or a bad thing?

Stock debt distribution is good for investors who own shares of listed companies and are ready to participate in debt distribution. After all, the probability of obtaining income after the listing of convertible bonds is relatively high. Once the convertible bonds are placed, they can often increase the investment income for investors. Moreover, the debt allocation of stocks is conducive to pushing up the stock price. Before the debt distribution of stocks, many investors who don't hold stocks may suddenly buy in order to obtain creditor's rights, thus pushing up the stock price.

Of course, if investors don't want to participate in debt distribution, it's best to consider selling stocks before debt distribution. After all, the stock price will fall after debt allocation. For investors who don't participate in debt distribution, if they don't sell their stocks, the decline in their stock prices will cause losses.

For investors who don't hold shares, there are good and bad. If you don't own stocks, if you want to participate in debt allocation, you will need to buy stocks suddenly, but buying stocks is also risky. If the stock falls, even if there is a share option, it may cause losses.

In fact, when a listed company allocates bonds, not all shareholders can enjoy the allotment right. There is usually a requirement for the number of shares held. Only when the number of shares reaches the minimum number of shares to obtain the allotment option can they participate in the distribution of creditor's rights.